New Income Tax Checker

chrisbur

RG2015 wrote: »

Thank you molerat.

It is strange though that we have a tax system that uses approximations and ‘exact’ amounts that are not real exact amounts.

Is it any wonder that HMRC are unable to deliver decent IT systems when the basis for their calculations is so illogical.

If we are going to use logic then....
"HMRC are unable to deliver decent IT systems"
When calculating tax HMRC use "real exact amounts"
Therefor using "real exact amounts" must be causing the problems.

So better to use " ‘exact’ amounts that are not real exact amounts." as they seem to work fine on all payroll programs I have come across.

Marniak

Hi guys!

I need some help...i’ve Tried calling the tax office but of course I can’t get through so am hoping someone here will know the answer!

In December last year I was made redundant from my job. Last week I started freelancing for an agency who initially wanted me to work 5 days a week for 3 weeks. This now might get extended to another 3 or so weeks depending on how well the campaign does.

My daily freelance rate is £220 - I have filled in a form and sent off to HRMC to register as self employed. My question is how much money do I need to keep by for my tax?

Additionally, I do not plan on staying freelance as I am looking for something permanent. So I will hopefully be getting a perm job ASAP which will be this year (I hope so anyway!!!) this means that my yearly income will be higher with my new job combined with what I make freelancing for the time being even though I don’t yet know what the salary will be for a perm job or more freelance jobs. I don’t know how much I should be keeping by?

I read that it’s up to 12k that you don’t get taxed but then after that you have to pay? So for example if I earn less than 12k freelancing and then a month later get a perm job do I need to pay tax at the end of the tax year? I hope I am making sense

Please help and TIA!

Dazed_and_confused

Unless you have applied for Marriage Allowance or have income in excess of £100k (Google adjusted net income if this is possible) you get a Personal Allowance of £12,500 in the current tax year.

You pay tax on your total taxable income but may have to pay Class 2 and Class 4 National Insurance on smaller amounts but that depends on how much profit your business makes.

You may pay some tax when you move onto PAYE but it will be your Self Assessment return which finalises the exact amounts.

Hard to say how much to set aside, you might have 40% tax, Class 2 and 4 National Insurance, student loan and High Income Child Benefit Charge to pay.

Or maybe just 20% tax.

JWeller17

saving_junkie wrote: »

What is "pension HMRC" box in the tool?

Was this question ever answered? Or can someone tell me what the 'Pension HMRC' box is?
Thank you

polymaff

JWeller17 wrote: »

Was this question ever answered? Or can someone tell me what the 'Pension HMRC' box is?
Thank you

"Monthly Pension Contributions

If you pay into a pension via the PAYE system on a monthly basis, enter the amount here. This assumes you pay your pension from NET pay, and thus get tax relief on contributions from HMRC. The calculator won't be accurate if you pay by salary sacrifice."

noodle_doodle

The allowances/deductions is a bit confusing

When I type in £110 (for my childcare voucher scheme) I expect my "in your pocket a month" figure to drop by about £90. Instead it goes up by £23 (the amount of tax I save).

Yup, I save the tax, but that £110 is not in my pocket :-)

[Deleted User]

Really helpful calculator - quick question though: it gives monthly and weekly net pay, but I am being transferred from monthly to 4 weekly pay and I'm not sure using the weekly figure x4 is the correct way to calculate my take home £. 
Any advice? 
Thanks! 

Paul_Herring

Any advice?

Use https://listentotaxman.com/ instead. It has an option for 4-weekly.

chrisbur

[Deleted User] said:

Really helpful calculator - quick question though: it gives monthly and weekly net pay, but I am being transferred from monthly to 4 weekly pay and I'm not sure using the weekly figure x4 is the correct way to calculate my take home £. 
Any advice? 
Thanks! 

Nearly all tax calculators fail to give exactly correct figures but most are near enough most of the time.  One time when they will often fail to give the correct tax figure is for the first payday after you change pay intervals as here moving from monthly to 4 weekly.  
The tax calculator here works exactly the same as PAYE and provided you enter the details correctly it will give you the tax figure exactly as it will appear on your payslip.
http://payecalculator.hmrc.gov.uk/PAYE0.aspx

TimK1984

Bit confused regards to my salary sacrifice for my pension. 
I know the income calculator deductions is not 100% accurate but I have a strange issue with regards to pension contributions.  The 4% after salary sacrifice is correct when you do the maths looking at my payslip but according to the calculator on the site I should have £13 more in my pocket after deductions.  But when I do 5% for pension instead the calculations on the site is almost bang on apart from a few pence.  Am I reading to much into it or is there something that is not taken into account when working out this sum on the site?